Datadog Shares Slide As Q1 Guidance Falls Short, Discloses Two Acquisitions

Datadog, Inc. (NASDAQ: DDOG) acquired Vector developer Timber Technologies to collect and transform data logs in on-premises and cloud environments. It also inked an agreement to acquire SaaS-based security platform Sqreen to detect, block, and counter application-level attacks. The financial terms of both the acquisitions remain undisclosed.
Datadog reported year-on-year revenue growth of 56% to $177.5 million in the fourth quarter of FY20, above the analyst estimate of $163.58 million.
Bigger customers posted a robust growth with 97 $1 million+ ARR customers.
The operating income stood at $18.1 million with a margin expansion of 300 basis points at 10%.
EPS amounted to $0.06, above the consensus estimate of $0.02.
The operating cash flow was $23.8 million, and the cash and equivalents balance stood at $1.5 billion.
Revenue outlook stood between $185 million and $187 million for the first quarter of FY21, above the analyst estimate of $181.27 million.
The expected operating income range is between $8 million and $10 million.
Expected EPS lie between $0.02 and $0.03, below the analyst estimate of $0.04.
Price action: DDOG shares are down 5.61% at $111 in the pre-market session on the last check Friday.

Momentum30.14

Growth27.79

Quality-

Value7.37

Short

Medium

Long

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